Seplat Energy, Nigeria’s largest independent oil and gas producer, is facing an indefinite strike by workers that began on Friday, a development that could disrupt output at a time when rising global oil prices are increasing pressure on the country to boost supply.
The strike action, led by members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), follows a breakdown in negotiations over a 2026 collective bargaining agreement and concerns related to staff welfare.
In two letters addressed to the company’s CEO and seen by Reuters, the union stated that the action would continue “until further notice.” Seplat Energy did not immediately respond to a request for comment.
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According to PENGASSAN, its members will halt most operations, including production reporting and export activities, while continuing only essential safety and power-related functions.
The strike affects the company’s onshore and offshore assets, joint-venture operations, and offices nationwide starting Friday. However, lower-level workers represented by a separate union are not participating in the strike.
Based on its latest audited results, Seplat Energy recorded an average group production of 131,506 barrels of oil equivalent per day in 2025, accounting for roughly 7% to 9% of Nigeria’s total liquids production.
The company had projected an increase in output to 155,000 boepd, making any prolonged disruption particularly significant for the country’s supply outlook.
As Africa’s largest oil producer, Nigeria is under growing pressure to raise crude production and foreign exchange earnings, especially amid higher global oil prices, ongoing fiscal challenges, and increased domestic refining capacity driven by the Dangote refinery.
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